Abstract [en]

When manufacturing firms increase the share of service revenues, managing service provision becomes challenging. This study extends previous research on servitisation in individual firms by analysing the challenges service provision creates in a value network. The challenges are identified both within the firms and in the business relationships in the value network. In addition, the paper identifies and describes service manoeuvres firms use to address challenges resulting from servitisation. This case study of a value network is based on interviews carried out at 13 firms in the automotive industry, including suppliers, original equipment manufacturers and consultancies. The research shows that service manoeuvres, such as new types of resource integration and value constellations, are used to overcome challenges in the value network.

Löfberg, Nina

Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center.

2014 (English)Doctoral thesis, comprehensive summary (Other academic)

Abstract [en]

Globalisation and competition from low-cost countries has pushed manufacturing firms towards offering services to remain competitive. However, increasing the service orientation of a manufacturing firm to find new ways of value (co-)creation has presented several challenges, such as the fact that services do not provide the expected revenues, and resistance from both the sales force and from customers towards services.

The aim of this thesis is to understand challenges linked to increasing service orientation in manufacturing firms, by means of goods and service business logics. The thesis emphasises the three dimensions of business logics – value perspective, service business strategy, and service offering – and studies them empirically in service divisions in the pulp and paper industry and in the automotive industry.

The findings show that firms with inconsistency between the three dimensions face certain challenges. Most often, the firms have a value perspective of goods business logic, but a service business strategy and a service offering of service business logic. Therefore, the most important and most difficult challenge to overcome in order to increase a manufacturing firm’s service orientation is the employees’ value perspective.

Three service manoeuvres were key to overcoming this challenge: changing employees’ mind-sets, starting to value services, and separating products and services. Although separating products and services could be assessed as a service manoeuvre consistent with goods business logic, it facilitated an increased service orientation. The fact that goods business logic manoeuvres led to a higher degree of service orientation, whereas service business logic manoeuvres did not always do so, is discussed as a service orientation paradox.

Place, publisher, year, edition, pages

Karlstad: Karlstads universitet, 2014. p. 94

Series

Karlstad University Studies, ISSN 1403-8099 ; 2014:30

Keywords

Service business logic, Value co-creation, Services in manufacturing firms, Service orientation

National Category

Social Sciences

Research subject

Business Administration

Identifiers

urn:nbn:se:kau:diva-31986 (URN)978-91-7063-562-5 (ISBN)

Public defence

2014-06-05, 11D 227, Karlstads Universitet, Karlstad, 13:00 (English)

Opponent

Kindström, Daniel

Linköpings Universitet.

Supervisors

Witell, Lars

Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center.

Gustafsson, Anders

Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center.

Edvardsson, Bo

Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center.